The core nature of lofi is characterized by low fidelity. And this relates to production quality that is somewhat shoddy, including the abstinence from polish and sheen.
Ultimately, lo-fi house is the prevalence of distortion, fuzz, drums laden with dirt, and cassette emulation over a house beat (usually 4/4) to capture minimalism and a more of a vintage aesthetic. That’s looking at it from a technical aspect though. The attitude propelling the genre cannot escape mention as many of the key figures in lo-fi house seem to present their brand in a manner which is “quirky” to say the least.